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Flower and lateral branches arise from the
(a) Lateral buds
(b) Lenticels
(c) Stomata
(d) Cuticle​

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Answer
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Hint: Flowers and lateral branches arise from small leaf-like structures on the stem. It is a modified leaf or scale, typically small. They are sometimes larger and more brightly colored than the true flower, as in poinsettia.

Complete answer:
The flower and lateral branches usually develop as a branch from a bud growing in the axil of a small leaf- like structure known as a bract. Such buds are known as lateral buds. Bracts are specialized leaves and are associated with a reproductive structure flower. They can be of different colors and shapes. They may be smaller, larger, or of a different color, shape, or texture. Typically, they also look different from the parts of the flower, such as the petals or sepals. Some bracts are brightly- colored and serve the function of attracting pollinators. Examples of this type of bract include Euphorbia pulcherrima and Bougainvillea: both of these have large colorful bracts surrounding much smaller, less colorful flowers.

Additional Information:
- The condition of having bracts is referred to as bracteate or bracteolate and conversely the state of lacking bract is referred to as bracteate and bracteolate.
- A small bract is called a bracteole or bractlet. This is any bract that arises on a pedicel instead of subtending it.
- The Bracts that appear in a whorl subtending an inflorescence are collectively called an involucre. An involucre is a common feature beneath the inflorescences of many flowers.
So, the correct answer is '(a) Lateral buds'.

Note:
- The term involucre is also used for a highly conspicuous bract or bract pair at the base of an inflorescence.
- An epicalyx, which forms an additional whorl around the calyx of a single flower, is a modification of bracteoles. In other words, an epicalyx is a group of bracts resembling a calyx or bracteoles forming a whorl outer to the calyx.
 - It is a calyx-like extra whorl of floral appendages.